Origin Energy closes financing for gas field acquisitions

Origin Energy Limited has announced the successful pricing and allocation of a €1 billion hybrid capital issuance with the proceeds subsequently swapped into approximately A$1.4 billion.Origin expects that the hybrid will be awarded 50% equity credit for ratings purposes from Standard & Poor's and Moody's, thereby supporting Origin's current credit ratings.

The issuance of these hybrid securities will complete Origin's financing associated with the acquisition of Karoon Gas’s 40% interest in two offshore exploration permits (WA- 315-P and WA-398-P) in Western Australia’s Browse Basin.

UBS Limited acted as structuring advisor on the hybrid capital raising and Barclays Bank, Goldman Sachs International and UBS Limited were Joint Lead Managers.

Origin Executive Director, Finance and Strategy, Ms Karen Moses stated:

Historically, Origin has enjoyed a strong level of support from investors across debt, hybrid and equity markets. This is demonstrated by the successful issue of €800 million and US$800 million senior unsecured notes in October 2013, together with the successful pricing of this €1 billion hybrid.

The hybrid is Euro-denominated and has been hedged into Australian dollars, is subordinated, matures after 60 years and can be redeemed by Origin at years 5 and 10 or on any interest payment date thereafter. The hybrid pays fixed semi-annual interest at a rate of 4% annum for the first 5 years and thereafter at reset rates in accordance with the terms and conditions

The settlement of the offering is expected to occur in mid-September 2014 and is subject to customary conditions.